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When is the time to start an IVA process? Do I have to be in arreas already or should I start when still making payments and my credit score is good?

If you are feeling the pinch it is worth speaking to an Insolvency Practitioner immediately. An IVA may be the best option for you and your creditors but it also may not be. It does not matter if you have CCJs, arrears or are up to date because most people who enter into IVAs have been transferring balances, withdrawing cash from credit cards to pay direct debits to other cards, obtaining consolidation loans etc. They are insolvent as their debts are increasing month on month but because they have managed to maintain the minimum payments have excellent credit records.

Do not do anything hasty until you have spoken to someone and most IP will give a free, no obligation initial interview.

Welcome to the forum.

I agree with Michael that you need to speak to a IP. They will go over all your options with you and advise as to the best one for you.

Visit www.iva.com for a list of companies with reviews, or click on the expert link on the left hand side of the page here. All of the professionals who post on here come highly recommended, their advice is free.

To follow that up, I would estimate that around 90% of people that I speak to have never missed payments at all, as Michael rightly points out payment history has no bearing at all on what the reality of the situation is. If you know that you are struggling then I would urge you to make the call(s) you need to and go forward from there.

Regards.

Thanks. I'm not planning to go for it yet, i just want to find out if I have to, I need to be in arreas to formally start the process or can I start it once I feel I can not cope with payments anymore?

You should definitely seek advice before you get into arrears because there may be options available that would not impact adversely on your credit file but it could be too late if you have already missed payments.

No, you don't need to be in arrears at all, but a call to put your mind at rest as to what your options in reality are would certainly be what I would encourage you to do.

All reputable firms will be happy to have a chat with you without obligation and you can then go away and make your own mind up as to which way you want to go.

Regards.

I would also advise, if you aren't doing it already to analyse where your money is going. When you need to sit down and do an income and expenditure it is all too easy to miss some

The correct time to decide whether you need formal debt assistance is when you recognise that your outgoings are more than your incomings and that you cannot afford to maintain contractual debt repayments without reliance on the taking of further credit.

An insolvency practitioner can help you assess this, and if you take advice at an early stage this can often avoid formal processes such as IVAs and bankruptcy.